Commercial Property Auctions
Property such as office buildings, industrial units, hotels, retail premises, public houses, and garages are becoming a primary sector of the commercial property auction market with sales under the hammer occurring more and more frequently. It doesn't matter whether they are vacant or tenanted, leasehold or freehold, there are an increasingly high number of potential investors attending nationwide commercial property auctions who will consider all types of commercial investment.
Whether you are looking to sell your property or are beginning your search for commercial property for sale at auction, it is recommended that you contact a property investment sales specialist who should have a thorough understanding of capital markets and commercial properties. Bearing in mind there are many different types of commercial property, it is important to know that the solicitor you choose has experience with the type of premises you are dealing with. An experienced commercial property specialist will generally save you time and legal costs due to streamlining.
UK Commercial Property
Commercial property has been one of the best performing types of asset in recent years despite uncertainty generally in the property market, and more and more people are looking at buying UK commercial property at auction, either for their own business premises, or as an investment to be leased.
There is a wide range of property available for any type of business imaginable – some specifically purpose built or with the potential to convert for business use. Planning permission from the local authority would not be needed to change the use of an existing business premises within the same class of business e.g. retail, agricultural, manufacturing, etc, and there are instances where the premises may be altered to another class of business without permission. However, if there is any doubt, it is always a good idea to fully investigate the possibilities for use of a building before making any financial commitment to buy it, by talking to a chartered surveyor or to the local planning authority.
When tracking down the ideal commercial property for your business, you'll need to do some initial research. Try reading property industry journals such as Estates Gazette which publishes regular surveys of different areas and industry sectors, or contact local businesses and organisations, such as Chambers of Commerce or Business Link to ask advice on where to buy.
Buying UK commercial property at auction can be a good investment as it provides a business with stability, and the property itself becomes a significant asset. But, buying is a major step to take and should therefore be given careful consideration before any commitment is made.
Commercial Property Finance
Unless you have a large amount of spare cash, you are likely to need commercial property finance i.e. a commercial mortgage, which is quite simply a mortgage that is lent to an individual or company to buy a business property and this can be for you own use or that of a third party. Commercial mortgages are available to purchase a huge range of different types of premises for sale at a commercial property auction.
These include: Commercial buy to let property Land for development Public Houses Hotels & Guest Houses Restaurants Farms and other agricultural land Leisure Industry Warehouses and Factory Units Office accommodation
There is no real limit to what can be borrowed, but the loan to value of a mortgage varies quite significantly between different types of property. To find out more, contact a commercial mortgage experts to discuss your commercial property auction finance requirements.
A growing number of commercial property auction houses specialise in providing both acquisition and disposal advice on UK commercial properties by auction including: retail premises, offices, industrial, and leisure investments, together with land and buildings with development potential.
With commercial property fast becoming one of the best performing asset types in terms of property investment, an increasing number of people are looking at investing in commercial property types.
There are many types of properties for sale coming up at commercial auctions. The most common include:
Office property is perhaps the most common of all commercial auction property. Offices can range from small one or two room facilities to huge office buildings and business parks where large corporations are run. Office for sale is the most common commercial property for investors, as offices can be used for a variety of business types and if in a good location at a good price you will always find tenants or buyers for the property.
Much of the UK’s well located office space is available on a leasehold basis and for many smaller businesses and new companies starting out, leasing certainly makes sense initially. However investing at a commercial property auction, in the purchase of office space can have many advantages too, not least the appreciation of the asset.
Industrial property covers commercial properties such as factories and warehouses. These properties are generally cheaper per square metre than other types of commercial auction property. However, if you don’t need to rent industrial property for your own needs it is best to avoid industrial property as a commercial investment tool.
Owning an industrial building such as a factory or warehouse provides businesses with a base and location from which to grow, and as such these type of properties are often attractive commercial venues to entrepreneurs. The profitability and growth opportunities in this industry remain high.
A growing number of people buy land as an alternative investment to property, and building plots and land for sale achieve immediate interest and invariably high prices at auction. The legal procedure for buying land is generally a lot less complicated than buying and selling property, and should always be conducted by a qualified solicitor specialising in land transactions.
Remember that, acquiring land with planning permission already granted doesn't necessarily guarantee that you will be able to build on it. There may be restrictive covenants attached which preclude you. This is an area your lawyer should carefully check.
Buying property at commercial property auction as an investment can be a sensible way to build an asset whilst accumulating capital. Be it office space, retail, a warehouse or industrial premises for the purpose of letting under formal tenancy agreements, commercial property can generate profit beyond mortgage repayments. Deciding which type of commercial investment property is right for your business needs can be difficult. However, as long as you consider each type of property and know the benefits and risks involved you will be able to make an informed decision that is right for your commercial property needs.
Shop Unit for Sale
One of the most important considerations when deciding on whether to buy a retail premises or shop for sale at a commercial property auction, is the net operating profit, which must take into account all ongoing running expenses such as staff costs, utilities and telephone charges tax and the cost of buying stock. Obviously, profits will change from year to year, but your mortgage lender will want to see that there is enough comfort margin so that paying the money back is not too much of a struggle.
It often makes sense to buy the property required for the business rather than spend the money on rent, particularly if the building needs work or repairs before it can be used. The business will then also have an asset which will hopefully increase in value.
Restaurant for Sale
When looking for a leisure premises or restaurant for sale at a commercial property auction, location as ever is a key factor as passing trade is the basis of success. Do your research to ensure that there are plenty of potential customers with sufficient spending power likely to be attracted to eat or drink at your establishment. Many lenders will also want to know of any possible contingency plans, just in case projected cash flow does not materialise. Investment in leisure property can be profitable, but as with retail property there is an increasing risk of tenant default.
Public House for Sale
More and more public houses are appearing under the hammer at commercial property auctions, both leasehold and freehold properties. As a property investment or development opportunity, run down, disused or delicensed freehold bars, hotels or pubs for sale are currently under market value and present excellent modernisation and refurbishment opportunities or may be suitable for demolition and redevelopment into offices, shops, care homes, restaurants, flats or apartments.
Rundown buildings, distressed and derelict property for sale are usually below market value and hold great investment potential for commercial property developers as renovation, restoration or refurbishment projects or for complete redevelopment as new buildings, new housing developments or new shops and offices (subject to receiving planning permission and change of use confirmation from your local authority).
Derelict land and buildings for sale at auction are becoming a more common occurrence although finance for projects of this nature may be harder to find, if the property is uninhabitable or unmortgagable in its current state.
Countrywide Commercial Auctions
The commercial properties displayed in our database include countrywide auctions listings, but if you’re interested in a commercial property auction in a particular location then simply tick the “commercial” property type box, along with your selected county or region of interest, and the search results will display the commercial properties for auction in your chosen area.
To display all current commercial property for auction simply click here.
To keep informed of new commercial properties for sale at auction in the UK register today. Our auctions UK database contains residential and commercial property information for counties throughout England, Scotland, Wales and Northern Ireland. Or if you’re thinking about selling your property at auction, take advantage of our free property valuation or give us a ring on 0845 053 6906 .